Understanding IFRS 17 / PSAK 117 and Its Impact
IFRS 17, issued by the International Accounting Standards Board (IASB), replaces IFRS 4 and establishes new principles for the recognition, measurement, presentation, and disclosure of insurance contracts. Its goal is to provide consistency and transparency in financial statements, allowing stakeholders to better understand an insurer's financial position.
In a world where regulatory requirements are becoming increasingly stringent, IFRS 17 / PSAK 117 stands out as a complex and comprehensive financial reporting standard for insurance contracts. For Indonesian businesses, meeting the demands of IFRS 17 / PSAK 117 compliance can be challenging. However, outsourcing these processes to specialized service providers offers a practical and efficient solution.
Why Outsource IFRS 17 / PSAK 117 Compliance?
Cost Efficiency
Managing IFRS 17 / PSAK 117 compliance in-house can be expensive due to the need for specialized software, skilled personnel, and continuous training. BPO services offer a cost-effective alternative, leveraging economies of scale to reduce overall expenses.
Access to Expertise
BPO providers in Indonesia have dedicated teams with in-depth knowledge of IFRS 17 / PSAK 117. These professionals stay updated with regulatory changes, ensuring your business remains compliant without having to invest heavily in continuous education and training.
Scalability and Flexibility
As your business grows, your financial reporting needs will evolve. BPO services are scalable, meaning they can adjust to your company's fluctuating requirements, offer flexibility, and handle peak workloads efficiently.
Focus on Core Competencies
By outsourcing IFRS 17 / PSAK 117 compliance, your business can redirect its focus toward core activities such as strategy, customer engagement, and market expansion, driving overall growth and competitiveness.
Business Technology
IFRS 17 / PSAK 117 compliance requires advanced software solutions for data management, reporting, and substantial investment in skilled personnel, training, and technology. By outsourcing, your business gains access to these advanced tools without the need for hefty upfront investment.
Key IFRS 17 / PSAK 117 BPO Services We Offered?
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Data Management and Reporting
Comprehensive services include data collection, cleansing, validation, and financial reporting to ensure accuracy and compliance with IFRS 17 / PSAK 117 standards.
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Compliance and Audit Support
Preparation for audits, including the provision of necessary documentation and support throughout the audit process.
Choosing the Right IFRS 17 / PSAK 117 BPO Partner Implementation and Compliances
Selecting a reliable BPO partner is crucial for successful IFRS 17 compliance. Consider the following factors:
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Experience and Reputation
Look for providers with a proven track record in IFRS 17 compliance and positive client feedback.
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Technical Expertise
Ensure the provider has the necessary technical expertise, including knowledge of the latest software and regulatory updates.
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Strong Communication
Effective communication is key. Choose a partner who maintains transparent and regular communication channels.
One such critical standard is IFRS 17 / PSAK 117, which impacts how insurance contracts are reported.
What can we do, technically...
Assist and support the implementation of IFRS 17 and local implementation of PSAK 117 “Insurance Contract”, including but not limited to:
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Reconciliate data input and output, including data cleansing and bug fixing, to ensure the application's accuracy.
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Assist users in running and analyzing the company's IFRS 17 system results, ensuring all data flow requirements are covered.
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Prepare data input for the IFRS 17 System.
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Review and check data output from the IFRS 17 System.
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Prepare and check data output from the IFRS 17 System to be included in the Finance GL System.
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Create and maintain data mapping and automation from spreadsheets using a combination of formulas and VBA macros.
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Create automation using Python, and create code according to user requirements, so that it becomes a UI/UX-friendly application.
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Update & enhance code / applications according to the interests of the Office Group and Business Unit.
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Carry out ETL (data transformation) and ensure the data complies with the SOP for meeting IFRS 17 requirements.
So...
By leveraging IFRS 17 / PSAK 117 BPO services, Indonesian businesses can meet regulatory requirements and gain a competitive edge in the market by providing data quality and accuracy that can be compared between insurance companies and industry.
To learn more about how our IFRS 17 / PSAK 117 BPO services can benefit your organization, contact us now!
